From: "Matt Robertson" 
Newsgroups: uk.finance
Subject: Re: ISA tracker fund where commissions are refunded
Date: Thu, 25 Nov 2004 22:48:15 GMT


"Guttorm Christensen"  wrote in message
news:250aq0ldac4pp7kh0l58ja7l7s0i64v4oj@4ax.com...
> Hi
>
> I have opted not to participate in the work pension scheme for a
> variety of reasons, so I am looking for a good place to regularly put
> aside a few hundred pounds a month.
>
> My time horizon is 5-10 years plus. So in that respect asset
> allocation is down to equity - I want the entire monthly amount to go
> into a high risk/reward investment.
>
> Further, I have become disillusioned with managed funds, and I do not
> see that they consistenly over time provide 'value for money' compared
> to their charges.

I won't labour the point as everyone has an option, but mine is that a
tracker fund is riskier that a well managed fund - a tracker will fall as
the index does, whereas a manage fund will be able to seek opportunities or
go more defensive.

There are a lot of quotes around about trackers outperforming x amount of
actively manage funds, but it comes down to choosing the right investment
house/manager/fund - I personally rate artemis and rathbones.  I'd
personally avoid fidelity special sits, it has the history and a good name,
but is consistently outperformed by similar funds and is becoming too large
a beast to handle - that isn't to knock Bolton, he's done a good job, I just
feel it's had its day (or years!).

Regards,

Matt.